U.S. President Donald Trump has not made good on his promise to impose blanket 25% tariffs on America’s major trade partners, much to the relief of neighbouring Canada and Mexico.
Trump had threatened to impose the tariffs on his first day in office Jan. 20. However, the incoming president appears to have backed down on that threat for the time being.
Trump did say he is looking at Feb.1 as the day when he plans to slap Canada and Mexico with 25% across-the-board tariffs, though his comments were largely non-committal.
“We are thinking in terms of 25% on Mexico and Canada because they are allowing vast number of people, Canada is a very bad abuser also, vast numbers of people to come in and fentanyl to come in,” he told the media when asked about the tariffs.
Trump added that he may also impose a universal tariff on all nations that the U.S. has trade relationships with, including China and the European Union.
“We’re not ready for that yet,” Trump said about the universal tariff. “Essentially all countries take advantage of the U.S.”
Despite Trump’s comments, which some analysts have said are unclear, the president’s new White House team has reportedly been saying that Trump plans to only sign a memorandum telling federal agencies to study trade issues, including alleged unfair currency practices by Canada, Mexico and China.
News that Trump is holding off on tariffs that would lead to damaging trade wars has led stock markets to rally, with all three major indices in America up in pre-market trading.
China’s Vice Premier Ding Xuexiang said in a speech on Jan. 20 that there are “no winners” in a trade war and that “protectionism leads no where.”
Economists have warned for months that tariffs would lead to higher prices for American consumers and likely drive inflation upwards at a sensitive time for the U.S. economy.
In his inauguration speech, Trump largely avoided talking of trade tariffs, focusing instead on immigration at the Mexican border and federal prosecutions of himself and his supporters.
There was also no mention of tariffs on imported Canadian goods in a list of policy priorities released by the White House following Trump’s inauguration.
In a statement issued Monday, Prime Minister Justin Trudeau congratulated Trump on his inauguration and cited Canada’s efforts to secure the border in response to U.S. concerns over illegal migrants and drugs.
“We are strongest when we work together,” wrote Trudeau.
